Anne Cleves Company reported the following amounts in the stockholders' equity section of its December 31, 2016, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) Common stock, S5 par (100,000 shares authorized, 20,000 shares issued) Additional paid-in capital Retained earnings Total During 2017, Cleves took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016. 2. Purchased 1,700 shares of its own outstanding common stock for $40 per share. Cleves uses the cost $200,000 100,000 125,000 450,000 $875,000 method 3. Reissued 700 treasury shares for land valued at $30,000. 4. Issued 500 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $45 per share. 6. Issued the stock dividend. 7. Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018. Instructions: (a) Prepare journal entries to record the transactions described above. (b) Prepare the December 31, 2017, stockholders' equity section. Assume 2017 net income was $330,000